iPod Touch Line-out Noisy with Univeral Dock

Has anyone else had problems with noise using the line out on the universal dock? When connected to my stereo, I hear all sorts of high pitched noises coming from the electronics in the iPod. When I change screens or put it to sleep, the noises change but only go away when I power it off. If I connect the mini-jack cable from my stereo directly to the headphone jack, there's no noise at all.

So obviously there is noise on the line-out of my dock connector. It is a week 43 unit. My stereo is nothing incredible, but it does reproduce everything including noise. When I plug the stock headphones in to the dock I can't really hear anything. I tried adjusting down the highest frequency range of the equalizer but that didn't really help. Listening to podcasts or audio books is annoying at best on the dock with all the background noise.

So, what should I do? Would you return it? Has anyone else had the same problem? I could just not use the dock but I already threw away the box so I can't return it. If I try to deal with apple and replace the iPod, what are the chances I will get a refurb unit with another problem?

From what I know about audio though, if there is interference on the line I would hear it whether it was plugged in or not. Does anyone else have a decent stereo that reproduces the high ranges well that can reproduce the issue? I can literally hold down the lock key and power off, after 10 seconds all the noise goes away. I know it's a problem with the iPod, I just want to know if it's a specific problem with mine or a common issue. I'm thinking about sending it back but I'm not looking forward to getting a refurb model back with another issue.

Not many replies on this one... but I have had similar since I bought mine last November.
Any time I plug into something which charges and plays I get the same noise interference as you describe.
Anytime I just connect the Ipod via the output jack, there is no interference so I guess its just when its charging.
Mine does not do this immediately when you start playing, but it happens after about 10 -15 mins.

I'm using a PocketDock from SendStation and haven't had a problem with it yet.

I have found a few things that can cause problems, so I think it might depend on how the setup is assembled. At home I run from the PocketDock line out cable to a Bose wave radio. At the same time I have a generic usb charger and a retactable usb cable plugging into the dock for power. With this setup I've had no static or noise issues. The main reason I believe is because both the radio and the ipod are plugged into the same surge supressor (power strip). If they are plugged in at different points in the power chain, you run the risk of creating a ground loop. Ground loops can be a bit of a pain, but can usally be corrected fairly easily. If the source of it can't be found, there are filters that can be used to reduce or elminate the problem.

In my car I have no problem unless I'm adding power from the cigarette lighter. The difference is that the noise changes with how fast I'm driving. This is usually a sign of alternator whine. In my case I don't believe the power is regulated into the lighter socket, or to where I'm pulling power for the modulator. A different problem, but a similar symptom. Google can be your friend with alternator whine and there are a number of ways to attack it. My method has been to just charge up before I drive.

Thanks for your post Jeff.
I'll try a surge suppressor and see if it makes any difference.
I have tried it in a different charge and play set of speakers (cheap ones though) at someone elses house and found the same problem.
I have used Ipod Nanos on both these units and had no interference at all, it just seems to be the Touch.
I was considering a more expensive set-up, but holding off until I am sure of the problem.

I just wanted an idea to what it was so if I need to return it I can do so before the warranty runs out later this year.